Vodafone cuts 500 jobs

Telecoms giant Vodafone has axed 170 staff from its global headquarters in Newbury.

The shock news came yesterday as the company announced the loss of around 500 jobs nationwide in a bid to reduce costs.

Employees were told their fate in an emergency meeting, with some leaving immediately, while others face an anxious six-week wait as consultations take place.

The cutbacks to its 10,000-strong workforce will be felt across its operations, affecting mainly back-office type roles and call centre staff.

The mobile phone operator hopes the move will help reduce its annual operating costs by £1 billion by 2011.

HR director Matthew Brearley said: “We would be making organisational changes anyway, but it might not have been to the same extent.

“Customers are being much more prudent, businesses and big organisations are saving money.

“What we do know is the recession has made more difficult what is already a tough, competitive market.

“We’re not closing any function, operation or location. It is at all levels and is not targeted at any particular level.

“We did make changes last year targeted at senior management, but this is across the whole piece.”

And Mr Brearley said that he could not rule out future job losses at the Newbury plant, which employs 3,500 staff. “We never say never,” he said. “It’s a difficult market. Nobody knows how deep this recession is going to be and we don’t know what will happen to customer behaviour.”

Newbury MP Richard Benyon described the layoffs as a “real blow.”

He said: “This is very sad news for all those who have lost their jobs and we are doing all we can to help them.

“Vodafone is the largest employer in my constituency. Nearly every voluntary body, sports organisation and school has been supported by Vodafone in recent years.

“The company is part of the fibre of West Berkshire life and will continue to be so in the future.”

Trade union Connect, which represents workers in the communications sector, said it was calling on Vodafone to ensure that all the job losses were voluntary.

National officer Steve Thomas said: “We will be working very closely with the company to ensure that our members are treated with respect during this difficult time and that a full and proper process of consultation is carried out.”

A company statement read: “Vodafone UK has announced reductions to its operating costs in order for it to compete more effectively in the UK market.

“The majority of savings will be achieved by taking operating costs out of the business, however, there will also be a reduction of approximately 500 jobs across the business.

“As customers look for best value in their mobile services, Vodafone intends to reduce its cost base whilst continuing to invest in new products and services to meet changing customer needs.”

Vodafone said it did not intend to close any stores, but planned to cut costs by offering more online services.

Earlier this month, the group, which has 19.1 million customers in the UK, posted revenues of £10.47 billion for the last three months of 2008, up 14.3 per cent on the same period a year ago.